The Bank of Namibia on Wednesday maintained its repo rate at 6.75%.

The decision, taken by the bank’s Monetary Policy Committee (MPC), is aimed at safeguarding the peg between the Namibia dollar and the South African rand, while supporting the domestic economy amid heightened global policy uncertainty, the bank’s governor, Johannes !Gawaxab, said.

!Gawaxab said the decision was reached following a comprehensive review of current and expected domestic, regional and global economic developments.

Private sector credit extension remained subdued and unchanged at 3.8% since the previous MPC meeting.

Commercial banks’ prime lending rate is expected to remain at 10.50%.

“We are facing uncertain times and turbulence and trade tariffs will directly and indirectly impact Namibia and the global economy,” !Gawaxab said.

He said Namibia’s gross domestic product (GDP) expanded at a solid pace of 3.7% in 2024, compared to growth of 4.4% in 2023.

The merchandise trade deficit improved and narrowed to N$4.6 billion.

Namibia’s international reserves remained sufficient at N$59.7 billion to maintain the currency peg and meet the country’s international financial obligations.